Franchise

Franchise

Franchising is a business opportunity that's somewhere between buying an existing business and launching a startup in terms of creativity, independence and risk. A franchisee buys a license from a franchisor to be a dealer of that business model. The owner of the franchise sells a product or service through its franchisees.

In exchange for an initial set-up fee and a monthly payment, the franchisor provides the franchisee a business model, marketing supplies, staff-training assistance, managerial consulting and a pre-existing supply chain. Also, the franchisee benefits from the franchisor's economies of scale, receiving access to prices that a business owner may not otherwise get running a single shop.

There is, in theory, less risk to buying a franchise business than starting a business from scratch because the business model has been tested. Also, as a franchise unit owner, you have a built-in advisory board in the management staff of the umbrella franchise organization. On the downside, you have less creative control over your business as a franchisee than as an independent business owner.

For more information about the top franchises, check out Entrepreneur's Annual Franchise 500 ranking.
 

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The National Labor Relations Board is treating McDonald's as a joint employer in more alleged labor violations, to the horror of the franchise industry.
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What to Expect as a Pizza Chain's First Franchisee in a New State

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After 10 years of owning a valet company, Rich Wilkinson decided to relocate to open a Which Wich location in South Carolina.
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Best friends since high school, Randy Vlasic and Alex Veinot always dreamed of opening a business together. Now, they're living the dream.
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